Sarah is a licensed salesperson affiliated with Ozark Realty in Springfield, Missouri. She has been working with a buyer, Marcus, for several weeks. Marcus makes an offer on a home listed by Sarah's colleague at the same brokerage. The managing broker designates Sarah to represent Marcus and her colleague to represent the seller. Which agency relationship best describes Sarah's role in this transaction?
Correct Answer
C) Designated buyer's agent, owing full fiduciary duties to Marcus
Under Missouri's designated agency rules, when the managing broker appoints Sarah specifically to represent Marcus, she becomes a designated buyer's agent and owes Marcus full fiduciary duties—loyalty, confidentiality, obedience, disclosure, accounting, and reasonable care—even though the transaction is in-house. This is the key advantage of designated agency over dual agency: each designated agent serves one client exclusively.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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